Transactions Between Blockchains – Atomic Swap
One Exchange of one cryptocurrency for another is called an Atomic Swap. It is a smart contract technology which uses the exchange without using centralized intermediaries, such as exchanges. Atomic swaps take place between two different cryptocurrencies for example Bitcoin to Litecoin.
For cryptocurrencies to do successfully an atomic swap you need fundamental requirements such as the implementation of the Lightning Network. The Lightning Network is a decentralized network using a smart contract functionality on the blockchain, to enable instant payments across the network of participants. Using a Bitcoin/Blockchain transactions with the use of the smart contract scripting language you can do the payment between this two cryptocurrencies. A smart contract is also known as a crypto contract is a computer program which directly controls the transfer of digital currencies or assets between parties under certain conditions. With the use of the smart contract, you don't need a middleman to transact.
Atomic swaps users will be able to instantly exchange any altcoin for bitcoins and vice-versa. This will allow users to buy bitcoin and use it to buy a coffee without changing to the coin of that restaurant. Atomic swaps are the future of interconnectivity between blockchains. Atomic swap is awesome but hardly any exchanges wallet supports it, the level of support is not good and it is going to take time to implement Atomic swap for the normal user.